Think of a Country which is composed of States. And there is no central governance present, what will happen to States. Few States might be able to self govern, few will loose direction and few will become rogue States. With time, it will become difficult to manage the Country as a whole. Vision of country will be blurred and lost. States won't be able to leverage each other strengths. States will try to run their own charters and soon forget that they are part of Country. Most of States will have their own priorities, goals and budgets.
Still not convinced and think that Governance is overhead in a Country. Just for information, check the link Somalia , which is the only country in the world where there is no government.
Now just replace the Country with Enterprise and States with Projects. Hope you understand that missing governance in Enterprises is one of most common reason for complex IT state.
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